2. COST ACCOUNTING CONCEPTS FOR IS ORGANIZATIONS › 2.6 Additional Accounting Options › 2.6.3 IS Inventory and Assets Accounting

2.6.3 IS Inventory and Assets Accounting

One of the major concerns of data processing executives is
the financial management of the hardware and software used to
satisfy the needs of their organization.  The tracking of
payments made to vendors, vendor invoice verification,
depreciation, purchase option accruals, investment tax
credits, and cost allocation are all part of the financial
information that management must coordinate to achieve
adequate organization profits and cost control.

An inventory and assets management system must have the
ability to apply cost information effectively in a chargeback
system.  The inventory costs of particular components become
the basis for direct charges to specific users.  However,
some equipment or software cannot be directly charged, but
rather must have their costs recovered from resource,
transaction, or other chargeable methods.

Cost recovery via resource, transaction, or other charge
methods necessitates rate setting.  One of the essential
ingredients of rate setting is your organization's inventory
and assets financial information.

To effectively manage inventory and asset financial
information and relate it to data processing users, you must
have a system that is capable of providing adequate
information to a chargeback system.  CA-I/S Inventory and
Assets Manager (CA-IAM) allows you to maintain charging
information that you can conveniently use with CA MICS
Accounting and Chargeback.